025 gloria blue nega

Management of Environmental and Social Initiatives

Major Achievements

Major Achievements(Contributing to Society through Core Business)

Major Achievements

ESG Solutions through Three Pillars of Growth Strategies

Komatsu seeks to help resolve ESG issues by promoting the three pillars of growth strategies defined in the new mid-term management plan. We strive to realize a positive cycle of sustainable growth through improvements of earnings and resolutions to ESG issues. Our initiatives include reducing environmental impacts to combat climate change and supplying high-quality, high-performance products, services, and solutions ensuring safety. KPIs have been set to guide these initiatives solving ESG issues through our core business.

CSR Themes ESG Solutions through Three Pillars of Growth Strategies Relevant SDGs
Enhancing Quality of Life
—Providing Products Required by Society—
  • Provide products, service and solutions contributing to sustainable development of infrastructure, natural resources and circular environmental protection (remanufacturing and forestry).
  • Improve productivity, efficiency, safety and environmental impact (lower CO2 emissions and higher ratio of renewable energy use) through innovations, such as automation in the entire value chain.
  • Make commitment to DANTOTSU Value which will realize a better Earth and future by means of technology and reliability (creation and maximization of customer value).



 

CSR Themes Key Initiatives under New Mid-Term Management Plan FY2021 KPIs FY2019 Performance FY2020 Performance
Enhancing Quality of Life —Providing Products Required by Society— Reduction of CO2 emissions (in comparison to FY2010)
● Reduction of CO2 emissions from product use (fuel-efficiency equipment, hybrid hydraulic excavator, rate of Smart Construction use, enhancement of ICT-intensive construction, mine automation, and underground mining equipment) 16% reduction (in comparison to FY2010) 14% reduction 14% reduction
● Reduction of CO2 emissions from production (plants with zero impact on environment and workers) 40% reduction (in comparison to FY2010) 33% reduction 33% reduction
Plants with zero impact on environment and workers
● Rate of renewable energy use (including purchase of renewable energy) 15% 11% 13%
● Work environment burden coefficient (particle matter density) 30% reduction (in comparison to FY2018) 10.7% reduction 24% reduction
● Water consumption 55% reduction (in comparison to FY2010) 49.4% reduction 52% reduction
Value chain reforms and redefinition of the aftermarket business
● Spare parts sales 11% increase 3% increase 8% decrease
● Reman component lifespan (compared to new components)
Actual value: Average operating time from the nth to the n+1st overhaul order
20,000 workhours (100% of new components) 26,866 workhours (134% of new components) 19,106 workhours (95% of new components)
Assurance of mine operation safety and productivity
● AHS units’ population (promotion of mining platform business) 380 units (aggregate) 221 units 352 units
DANTOTSU Product, DANTOTSU Service, and DANTOTSU Solution
● ICT-intensive equipment introduced(United States, Europe, and Australia) 1,590 units (per year) 1,361 units 1,288 units
● Sites adopting Smart Construction 4,850 (per year) 2,440 3,348
Automation, automamous operation, electrification, and remote-controlling of equipmenttion
1. Automation of construction equipment Test introduction of hydraulic excavators for automated loading Verification tests conducted on user sites In-house verification tests
2. Automation, autonomous operation, and remote operation of mining equipment Entry into mining bulldozer market (level 4 automation) Preparations advanced to launch mining bulldozer with level 2 automation Domestic pretest of bulldozer with level 3 automation, preparation for proof of concept test in Australia
3. Automation of utility equipment Development of technology for automated forklifts Development of peripheral safety technologies for
supporting automation
Entry into retrofit market for installing peripheral safety
functions in preparation for automation
● Enhancement of mining equipment and hard rock mining businesses Expansion of product series Advancement of development projects for expanding product series Expansion of product series (drills, LHD) Four models
Agricultural solutions and smart forestry
● Creation of construction equipment demand in agricultural field Japan:
Expand lineup of agricultural loaders
Indonesia:
Increase number of users of agricultural techniques employing agricultural bulldozers
Japan:
Commencement of verification tests at five agriculture business operators
Indonesia:
Started mass production and sales of D31PLL agricultural bulldozer
Japan:
Development and market evaluation of agricultural ATT
Indonesia:
Confirmation of feasibility of D21 agricultural bulldozer for direct rice planting applications
● Smart forestry projects 50 10  19
IoT and ICT work reforms
● Sales in Kom-mics platform business (visualization of production equipment operation) 1,900 units (including for internal use) 865 units 1,447 units
CSR Themes ESG Solutions through Three Pillars of Growth Strategies Relevant SDGs
Developing People
  • Develop a diverse workforce with a high level of productivity and technical skills.
  • Strengthen and develop diverse talent with a global perspective to help achieve sustainable workplaces.
  • Develop talent with cross-value chain capabilities.

 

CSR Themes Key Initiatives under New Mid-Term Management Plan FY2021 KPIs FY2019 Performance FY2020 Performance
Developing People Development of a diverse workforce with a high level of productivity and technical skills
● Enhancing employee engagement Improvement of global surveys and indexes Scheduled for FY2020 Preparation for survey in FY2020, global survey in April 2021
● Work process reforms through expansion of diverse and flexible workstyles Total workhours of less than 2,100; introduction of telework system (Japan) (1) 1,950 workhours per person/year
(2) Commencement of trial in August 2019
(1) 1,920 workhours per person/year
(2) Revision of telework system in August 2020
● Promotion of The KOMATSU Way (global dissemination of The KOMATSU Way) Training hours and number of participants (Disclosure of results) • Training hours: 31,625 hours (aggregate hours for all participants)
• Number of participants: 1,461 in Japan, 307 overseas
• Training hours: 33,188 hours (aggregate hours for all participants)
• Number of participants: 1,527 in Japan, 0 overseas
Strengthening and development of diverse talent with a global perspective to help achieve sustainable workplaces
● Revision of role of Japan in global management Shifting of human resources to projects and improvement activities; globalization of organizations on by-function basis Human resource system revisions started in Japan • Revision of domestic retirement, wage, and retirement benefit systems in April 2021
• Introduction of elective retirement and R&D staff systems
● Foundations for global measures (systems, frameworks) Introduction Preparations advanced for introduction Commencement of domestic data linkage
● Empowerment of female employees ((1) non-consolidated ratio of female employees, (2) non-consolidated ratio of female managers, (3) consolidated ratio of female managers (Japan)) (1) 12.5%, (2) 10.0%, and (3) 5.0%
(1) 12.3%, (2) 7.2%, and (3) 4.5%
(1) 12.3%, (2) 7.7%, and (3) 4.9%
● Rate of employment of people with disabilities (comply with requirements in Japan) Above 2.3% (legally mandated rate) 2.58% (non-consolidated) 2.82% (non-consolidated)
● Support for regional human resource development for job creation (regional human resource development with Cummins Inc.) Chile, Australia, South Africa, others • Human resource development program launched in Chile
• Ongoing support provided in Peru, South Africa, and Australia
• Participants’ success in finding employment tracked
• Ongoing support in Chile, South Africa, and Australia
• Establishment of scholarship program for students in Chile
and Peru as part of COVID-19 relief program
Development of talent with cross-value chain capabilities
● Cultivation of Smart Construction consultants (capable of proposing solutions using ICT to improve productivity and safety throughout construction workplaces) 430 (aggregate) 396 626
CSR Themes ESG Solutions through Three Pillars of Growth Strategies Relevant SDGs
Growing with Society
  • Offer resolutions for social issues through collaboration with stakeholders.
  • Act as a responsible corporate citizen ensuring corporate governance, compliance, and human rights.

 

CSR Themes Key Initiatives under New Mid-Term Management Plan FY2021 KPIs FY2019 Performance FY2020 Performance
Growing with Society Resolutions to social issues through collaboration with stakeholders
● Promotion of industry-government-academia collaboration as well as of collaboration with customers Promotion of Brand Management and activities creating value for customers Examination of cutting-edge tools through activities with domestic customers and regional dissemination • Posting of past activity documents on Group portal
• Shared information on activities in 14 regions on rotational basis
• Continuation of activities by headquarters team targeting three customers (two civil engineering, one aggregate)
● Shareholders and individual investors (shareholder meetings, shareholder factory tours, individual investor meetings) Number of meetings held (Disclosure of results) • Shareholder meetings: 2 times
• Shareholder factory tours: 10 times
• Individual investor meetings: 7 times
• Certain factory tours and meetings canceled due to impacts of global COVID-19 pandemic
• Shareholder meetings: 1 time (held online)
• Shareholder factory tours: 0 time (canceled due to COVID-19 pandemic, factory tour videos shared on official
Komatsu YouTube account)
• Individual investor meetings: 4 times (held online)
● Institutional investors (ESG meetings) Number of meetings held (Disclosure of results) 11 (ESG-related meetings) • ESG-related meetings: 4
• Participation in conferences: 1 (meetings held with 18 investors)
● Communities (business site fairs) One fair held at each of nine factories per year Business fairs at nine factories (Awazu, Osaka, Ibaraki, Kanazawa, Tochigi, Oyama, Koriyama, Shonan, and Himi); canceled only at Shonan Plant due to impacts of Typhoon Hagibis All factory fairs canceled due to COVID-19 pandemic
● Employees (meetings) Number of meetings held (Disclosure of results) 34 (30 in Japan, 4 overseas) 29 in Japan (canceled overseas due to COVID-19 pandemic)
Action as a responsible corporate citizen addressing corporate governance, compliance, and human rights
● Occupational health and safety, support for establishing environmental and safety systems at suppliers, response to Japan’s Corporate Governance Code (corporate governance reports), evaluations of effectiveness of Board of Directors, internal control, and internal audits Ongoing improvements made in reflection of relevant laws and regulations and social expectations Establishment of Human Rights Policy, disclosure in integrated report Revised Komatsu Code of Worldwide Business Conduct
Human rights e-learning programs, etc.
komatsu csr